Chess secrets - three critical elements for better decision making

Good business decision making requires strategic thinking, adaptability and the ability to consider long-term consequences. It’s a lot like chess. So, what can we learn from the game to help us make better business decisions?

Chess is often seen as a series of possible logical moves and counter moves. Just like business decision making where we analyse the data, identify patterns and then use them for problem solving.

But here’s the catch: even the most advanced computers can’t calculate every possible move before the time runs out for them to make a move. There are 10⁴⁰ possible board positions and 10¹²⁰ possible games, too many for even today’s fastest computers to analyse every combination. In business, we face a similar challenge: limited time to make decisions before competitors do or market conditions change.

And here’s where it gets interesting. In chess competitions where humans and computers worked together, teams of humans plus machines consistently outperformed even the most powerful computers even when the chess player only had a basic laptop.

Why? The answer lies in how chess grandmasters think.

Garry Kasparov, one of the greatest players of all time, explained:
“I can think maybe 15 moves in advance and that's about as far as any human has gone. Inevitably you reach a point when you've got to navigate by using your imagination and feelings rather than your intellect or logic. At that moment you're playing with your gut.”

Kasparov’s ability to use intuition and creativity came from his upbringing. His mother realised that imagination was important and she insisted that he studied humanities in high school. That blend of logic and intuition is what sets the best chess players and business leaders apart.

But there’s a third component that’s critical for good decision making.

This was demonstrated in a chess experiment where combinations of people on computers competed against each other. Two American amateur chess players using three computers won. But what gave them an edge? They used their computers to look very deeply into specific positions that beat Grand Masters and the greater computational power of other participants. This approach even beat competitors who had a superior understanding of chess + powerful computers but an inferior process.

The lesson for business is that human intuition + computational power + good process is a winning combination. The right process ensures that resources are focused on the things that will move the needle most. To make good decisions we need a combination of all three.